Bitcoin (BTC) has the potential to reach $180,000 if a new bullish indicator follows historical patterns.

In a recent analysis on X, Caleb Franzen, founder of Cubic Analytics, predicts that BTC price could surge by 260% this cycle.

This projection is supported by the current crypto trends and the potential impact of US government regulations on the crypto market.

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Analyst examines rare Williams%R Oscillator signal in the midst of crypto regulation in the US

Bitcoin has seen a remarkable 43% increase in February alone, but a long-term BTC price indicator is already predicting even higher levels.

By analyzing the Williams%R Oscillator on three-year timeframes, Franzen has uncovered a unique bullish signal that has only appeared four times in history.

“Bitcoin just closed at its highest monthly level since October 2021, but it gets even more exciting and bullish… The 36-month Williams%R Oscillator has just crossed into overbought territory for only the fourth time ever,” he summarized.

The Williams%R Oscillator is a tool used to measure the strength of BTC price trends. As previously reported by Cointelegraph, Franzen demonstrated how this tool was crucial in predicting the start of Bitcoin’s recovery from the 2022 bear market lows.

While the focus was on 12-month timeframes then, the current situation is even more unique – the 36-month Williams%R Oscillator is now entering “overbought” territory above -20.

“I always say and will continue to repeat it: overbought signals are extremely bullish and should be seen as momentum indicators, not signals to fade,” Franzen added.

Previous signals appeared in 2013, 2016, and 2020 – all years that marked the beginning of a Bitcoin bull market.

Although the returns have decreased with each cycle – from 1,900% in 2013 to 260% in 2020 – even matching the latter would result in a BTC price of $180,000.

However, Franzen also acknowledged that these rare occurrences should not be considered a guarantee of future performance.

“The same analysis that I shared for the 12-month and 24-month Williams%R signals has been spot on; however, this study does not guarantee anything. It simply shows us how market participants have behaved in the past when investor behavior was statistically similar,” he explained.

The RSI indicator continues bullish trend to monthly timeframes

Another indicator that tends to remain in “overbought” levels during bull markets is the Relative Strength Index (RSI).

On daily timeframes, the RSI is currently in the overbought zone, reaching 80/100 on Feb. 28, according to data from Cointelegraph Markets Pro and TradingView.

In late December, the daily RSI underwent a reset, which preceded Bitcoin’s initial surge into the launch of spot Bitcoin exchange-traded funds (ETFs) in the United States.

Furthermore, monthly timeframes show even more positive signs, with the RSI just now entering the overbought zone.

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